Sofia and Berlin seek new horizons for joint investments

Germany is the country that former Bulgarian President Rumen Radev chose for his first foreign visit as Prime Minister of Bulgaria. The visit comes at the invitation of German Chancellor Friedrich Merz and is a clear sign of the importance Bulgaria places on its relations with Germany. Also part of the Bulgarian delegation are Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Pulev, and Foreign Minister Velislava Petrova.

The high-level meeting is expected to give new momentum to the political dialogue between Sofia and Berlin and outline new opportunities for developing the strategic partnership between the two countries. After the official welcoming ceremony with military honors, the two leaders will hold a one-on-one meeting, followed by a plenary session between the delegations. Key topics include economic cooperation, European policy, and security.

Germany is Bulgaria’s largest foreign trade partner, with trade turnover between the two countries exceeding €12 billion. Hundreds of German companies operate in Bulgaria, mainly in the automotive industry, mechanical engineering, and manufacturing sectors, providing thousands of jobs.

According to data from the Bulgarian National Bank, German investments in Bulgaria in 2025 amount to around €4.2 billion. A new phase in economic relations between the two countries is the partnership in the defense industry, including projects by the German company Rheinmetall to produce gunpowder and ammunition according to NATO standards.

Last August, Rumen Radev attended the opening of the company’s new factory in Bulgaria, emphasizing his expectations for increased German investment and Bulgaria’s more active participation in pan-European defense and high-tech projects.

Southern Germany - A Driving Force in Economic Relations

Economic relations between Bulgaria and the German states of Bavaria and Baden-Württemberg are particularly active. In an interview with Radio Bulgaria, Bulgaria’s Consul General in Munich, Stefan Yonkov, emphasized that Bulgaria achieves its highest trade exchange with these two federal states.

According to him, a key priority of the Consulate General is attracting German investment and supporting Bulgarian companies seeking partners and clients on the German market.

The consul noted that Bulgarian companies show sustained interest in Germany, especially in the fields of information technology and digitalization.

“Bulgarian companies have always shown very strong interest in Germany. A large part of the success stories currently belong to the most up-to-date sectors such as IT and digitalization. There are numerous Bulgarian companies that have already built these bridges between us and Baden-Württemberg and Bavaria and are working intensively in this direction. Bulgarian software teams are developing their own products for clients here in Germany. At the same time, Bavaria and Baden-Württemberg are the industrial engines of Germany, with the well-known automotive industry playing a leading role in both federal states. Of course, this does not exhaust all opportunities for cooperation - there are also mechanical engineering, high technologies, and more recently space technologies, where Bulgaria also has its own success stories, which are particularly interesting here.”

Among the concrete examples of new investments, Consul Stefan Yonkov points to a project by an automotive company in Ruse that manufactures components for a major Bavarian car producer, as well as an investment in the automotive sector in Stara Zagora.

As a successful example of attracting Bavarian investment, the consul also highlighted the establishment of a FlixBus knowledge hub center in Sofia, where nearly 100 people are already employed. According to him, Bulgaria won the project in competition with six other countries. Another significant investor, according to Stefan Yonkov, is Multivac, which develops machinery production for the food-processing industry.

The visit of the Bulgarian Prime Minister to Berlin comes at a key moment for Europe, when economic security, industrial development, and technological investments are becoming increasingly important elements of partnership among European Union member states.

Interview: Yoan Kolev

Editor: E. Karkalanova